Stay or Switch: Customer Loyalty Tested

Brand Loyalty: Cracks Widen

Only 36% of Thai consumers confirm they will repurchase the same brand. Vulnerability is highest among Chinese brands, with 82% of their current owners undecided or almost ready to switch. Even Japanese brands—long considered the strongest—face risk, as half of their owners remain unsure about repeat purchase.

Key reasons to stay

• Product satisfaction: Loyalty is reinforced when brands deliver reliability, attractive design, and strong performance.
• Positive ownership experiences (sales & aftersales): Smooth purchase processes, attentive dealership interactions, transparent servicing, and responsive problem resolution build reassurance and trust.
• Brand image and perception: A well-established reputation and prestige continue to anchor loyalty, particularly for brands associated with safety, quality, and strong resale value.

Key reasons to switch

• Changing consumer needs, lifestyles and preferences: Expanding families, new mobility patterns, or demand for eco-friendly alternatives push customers to explore other brands and models.
• Lack of innovation: Brands that fail to keep pace with evolving technology—advanced safety features, connectivity, and electrification—risk losing relevance, especially among younger, tech-savvy buyers.
• Poor ownership experiences and declining resale value: Lack of transparent pricing, aggressive price wars that damage resale values, or dissatisfaction with aftersales support directly erode trust and accelerate customer defection.

Next Powertrain: Growing Uncertainty

When considering their next vehicle, Thai customers are showing greater caution and hesitation. The share of consumers who are unsure about which powertrain to choose has risen from 17% in 2024 to 29% in 2025.

BEV owners still demonstrate some willingness to stay electric, but momentum is weakening, with fewer drivers firmly committed to repeating their purchase. At the same time, ICE owners are steadily moving away from traditional engines and leaning toward hybrids, which are gaining traction as a practical and reassuring middle ground.

This rising hesitation positions hybrids as the "safe bet" for many consumers—bridging the gap between familiar ICE vehicles and fully electric models. Automakers with a diverse powertrain portfolio—offering ICE, hybrid, and EV—will be best placed to capture customers who are not yet ready to commit to a single path.

Expert View & Strategic Implications

"Thailand's auto market is at a turning point. Customers are replacing cars faster but showing weaker brand loyalty. Hybrid is becoming the near-term answer, while EVs must still prove safety and reliability before gaining long-term acceptance."- Siros Satrabhaya, Managing Director of Differential Thailand

The study underscores one clear message: the Thai automotive market is wide open for challengers—but equally open for defections. Sustaining loyalty will depend on delivering delightful ownership experiences, anchored by innovation and trust.

• For Chinese brands, the priority must be building customer trust through dependable aftersales service, transparent warranties, and responsive support networks. Without this foundation, even competitive pricing or attractive new models will struggle to generate repeat buyers.
• For Japanese and American brands, the challenge lies in refreshing their strong legacies with bold design and next-generation innovation. Advanced features, improved safety, and futuristic infotainment systems must be paired with pricing packages that remain competitive with Chinese rivals. While Japanese or American cars will inevitably carry a premium, that premium must be justifiable and not too far from the competition in order to retain relevance, maintain leadership, and capture the loyalty of younger generations of buyers.

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